Analysing Stock Sectors in FYERS' Portfolio Analyser

What does Stock Sector in Portfolio Analyser indicate?

The Stock Sector in a portfolio analyser provides insights into the distribution of equity assets across three supersectors - Cyclical, Defensive, and Sensitive. It further breaks down these holdings into ten primary industry sub-classifications, offering a comprehensive understanding of where investments are concentrated.

  1. Cyclical Sector:
    Sensitive to business cycles, the stock prices in this sector oscillate based on economic performance. When the economy thrives, stock prices rise, but they decline during recessions.
Classifications under the Cyclical supersector include:
  • Basic Materials Stocks: Examples are Aarti Industries, Ambuja Cements, Asian Paints, among others.
  • Consumer Cyclical Stocks: Such as Alok Industries, Bata India, Bharat Forge, etc.
  • Financial Services: Notable ones include SBIN, HDFC, Bajaj Finserv, etc.
  • Real Estate Stocks: Including DLF, Brigade Enterprises, Zuari Global, etc.
  1. Defensive Sector:
    This sector comprises stocks that tend to remain stable, offering consistent returns and dividends, regardless of overarching stock market conditions. Their stability stems from the constant demand for their products or services.
Classifications under the Defensive supersector are:
  • Consumer Defensive: Examples include Bajaj Consumer Care, HUL, ITC, etc.
  • Healthcare: Aurobindo Pharma, Biocon, Aarti Drugs, among others.
  • Utility Stocks: Such as Tata Power, GAIL, Adani Power, etc.
  1. Sensitive Sector:
    These sectors are intermediary between the cyclical and defensive sectors. They aren't entirely insulated from economic downturns like the defensive sector, nor are they as affected as the cyclical sector during adverse economic conditions.
Classifications under the Sensitive supersector encompass:
  • Communication Services: Notable ones are Airtel, Vodafone Idea, Route Mobile, etc.
  • Energy Stocks: Reliance, ONGC, IOC, among others.
  • Industrials: Apollo Pipes, Voltas, Suzlon, etc.
  • Technology Stocks: Such as TCS, Wipro, Infosys, etc.

The displayed portfolio predominantly leans towards the Cyclical nature, with 47.51% in Cyclical stocks, 10.99% in Defensive stocks, and 41.50% in Sensitive stocks.

Among these, Financial Services stands out as the primary contributor at 36.81%, followed by Consumer Cyclical at 9.91%, and Basic Materials at a minimal 0.80%.
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